Verizon North, Inc. v. Strand

140 F. Supp. 2d 803, 2000 U.S. Dist. LEXIS 18620, 2000 WL 33281688
CourtDistrict Court, W.D. Michigan
DecidedDecember 6, 2000
Docket5:98CV38
StatusPublished
Cited by10 cases

This text of 140 F. Supp. 2d 803 (Verizon North, Inc. v. Strand) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Verizon North, Inc. v. Strand, 140 F. Supp. 2d 803, 2000 U.S. Dist. LEXIS 18620, 2000 WL 33281688 (W.D. Mich. 2000).

Opinion

OPINION

ROBERT HOLMES BELL, District Judge.

Verizon North Incorporated, formerly known as GTE North Incorporated (“Verizon”) is an incumbent local telecommunications carrier in Michigan. In this action Verizon has sued John G. Strand, John C. Shea, 1 and David A. Svanda, Commissioners of the Michigan Public Service Commission (“MPSC”), seeking declaratory and injunctive relief from the February 25, 1998, order of the MPSC. Verizon contests two provisions of the order: the provision that Verizon offer network elements and services for sale through published tariffs, and the provision that Verizon combine unbundled network elements for its competitors at their behest. Verizon brings this action under the Supremacy Clause, arguing that these provisions are in con *806 flict with and are preempted by the Federal Telecommunications Act of 1996 (the “FTA” or the “Act”), Pub.L. No. 104-104, 56 Stat. 110 (codified in various sections of 47 U.S.C.). Verizon also brings a separate and independent claim that enforcement of the order infringes its statutory rights in violation of 42 U.S.C. § 1983. This matter is currently before the Court on Verizon’s affirmative motion for summary judgment. 2

I.

Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment is proper if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. In evaluating a motion for summary judgment the Court must look beyond the pleadings and assess the proof to determine whether there is a genuine need for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). If the moving party carries its burden of showing there is an absence of evidence to support a claim then the non-moving party must demonstrate by affidavits, depositions, answers to interrogatories, and admissions on file, that there is a genuine issue of material fact for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 324-25, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The mere existence of a scintilla of .evidence in support of the non-moving party’s position is not sufficient to create a genuine issue of material fact. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The proper inquiry is “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.” Id. at 251-52, 106 S.Ct. 2505.

II.

Because the Court is limited by Article III, § 2 of the United States Constitution to the adjudication of actual cases or controversies, the Court’s first consideration is whether this case is ripe for review. 3 Dixie Fuel Co. v. Commissioner of Social Security, 171 F.3d 1052, 1057 (6th Cir.1999). The basic rationale of the ripeness doctrine “is to prevent the courts, through premature adjudication, from entangling themselves in abstract disagreements.” Thomas v. Union Carbide Agricultural Products Co., 473 U.S. 568, 580, 105 S.Ct. 3325, 87 L.Ed.2d 409 (1985) (quoted in National Rifle Ass’n of America v. Magaw, 132 F.3d 272, 284 (6th Cir.1997)). The ripeness inquiry requires the court to consider “whether the issues are fit for judicial decision as well as the hardship to the challenging party resulting from potential delay in obtaining judicial decision.” Dixie Fuel, 171 F.3d at 1058 (citing Thomas, 473 U.S. at 581, 105 S.Ct. 3325). See also Kardules v. City of Columbus, 95 F.3d 1335, 1344 (6th Cir.1996). A case is “fit for judicial decision” where the issues raised are purely legal ones and where the agency rule or action giving rise to the controversy is final and not contingent upon future uncertainties or intervening agency action. GTE North, Inc. v. Strand, 209 F.3d 909, 923 n. 7 (6th Cir.2000) (citing Abbott Laboratories v. Gardner, 387 U.S. 136, 149, 87 S.Ct. 1507, 18 *807 L.Ed.2d 681 (1967), overruled on other grounds by Califano v. Sanders, 430 U.S. 99, 97 S.Ct. 980, 51 L.Ed.2d 192 (1977)).

Defendants contend this case is not ripe for decision because Verizon does not have on file any enforceable tariffs as directed by Case No. U-11281.

Defendants’ assertion that there are no enforceable tariffs on file in Case No. U-11281, while technically correct, is factually irrelevant, as the lack of a tariff in Case No. U-11281 does not mean that there are no enforceable tariffs on file. Pursuant to the February 25, 1998, order in Case No. U-11281, Verizon was required to file a tariff. The tariffs Verizon filed under U-11281 were rejected by the MPSC. The MPSC has not required Verizon to submit corrected tariffs in Case No. U-11281. As Defendants themselves noted, the MPSC has “moved past” Case No. U-11281 and has conducted new cost proceedings in Case No. U-11832. The tariffs filed under the new cost proceedings implement the very same tariff filing requirement entered in Case No. U-11281, but are based upon updated cost studies. Verizon filed tariffs in Case No. U-11832 on August 2, 2000. Accordingly, there are enforceable tariffs on file that would currently enable a competitor to actually request access at the tariff rate.

The relevant inquiry in this case is “whether the ripeness inquiry demands that one of [Verizon’s] competitors actually request access at the tariff rate before deciding the case, or whether the order itself gives rise to a justiciable claim because it imposes an immediate obligation on [Verizon] to sell network elements at predetermined rates.” GTE North, 209 F.3d at 923 n. 7.

Because Verizon is challenging the MPSC’s authority under the FTA to require the filing of a tariff, this suit raises a purely legal issue. Burlington N. R.R. Co. v. Surface Transp. Bd., 75 F.3d 685, 691

(D.C.Cir.1996). The legal question presented is ripe for review because the filing of a tariff has “immediate effects on legal rights relating directly” to Verizon’s primary conduct. Id. at 690.

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140 F. Supp. 2d 803, 2000 U.S. Dist. LEXIS 18620, 2000 WL 33281688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/verizon-north-inc-v-strand-miwd-2000.